Rémy Cointreau Group on Friday reported a 3% revenue growth for the first nine months of its 2017/18 financial year ending in December. Sales rose to €862.1 million from €836.7 million, helped by robust growth of its Rémy Martin cognac brand which posted a 7.9% growth to €576.6m, contributing 67% of the overall group’s sales.
The group benefitted from continued growth of the Rémy Martin cognac brands in the Asia Pacific region, despite a high basis of comparison in the third quarter and the late timing of 2018 Chinese New Year (sales delayed to the fourth quarter). The Chinese New Year starts on February 16 this year, delaying its positive impact on sales to Remy Cointreau’s fourth quarter.
The French-based spirits firm also got some help from strong demand for its cognac brands in the United States, Russia, Africa and Travel Retail.
Sales of the group’s Liqueur & Spirits Division, however, declined 4.6% in the period under review due to the de-consolidation of Passoã, while its partner brands fared even worse, with 7.8% decline –blamed on the result of changes in the portfolio of distributed brands (the end of distribution agreement for champagne brands Piper-Heidsieck and Charles Heidsieck).
Looking forward to the rest of the year, Rémy Cointreau confirmed its guidance of growth in Current Operating Profit over the financial year 2017/18, assuming constant exchange rates and consolidation scope.
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